Recently, the investors informed that Alcoa’s San Ciprián smelter has ramped up to 90 per cent of its capacity. The smelter, located in Spain, by mid-year, especially after experiencing some earlier cutbacks, is expecting to reach its full capacity.

Back in 2021, the smelter's production was reduced due to rising power costs and a nationwide power outage in Spain last April, which further complicated operations at the nearby smelter and refinery as well. Before this reduction, the facility boasted a production capacity of 228 thousand tonnes per year.

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Alcoa's Executive Vice President and Chief Financial Officer, Molly Beerman, stated, "We've got a great workforce, a really knowledgeable team there. The assets were well maintained during their curtailment. So, that is progressing very well. “All we need now for San Ciprián is a long-term power contract. We're hedged through 2027, but we'll be looking at power options for that facility for the longer-term."

The company is optimistic that by 2027, the smelter will be running profitably, bringing in enough cash to balance out the losses from the refinery. However, the refinery, which provides alumina to the smelter, is facing significant challenges and is currently operating at just half of its capacity, with a limited lifespan ahead.

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The firm is currently investing in a new residue storage area on-site, which is expected to fill by the early 2030s. In the short term, the firm aims for cash neutrality, assuring that the San Ciprián operations do not drain funds meant for other capital projects and that the cash generated by the smelter can cover the losses from the refinery.

To know how the Middle East crisis is affecting the smelters worldwide, read the report “Global ALuminium Industry Outlook 2026”